Prudent industrial policies should guide markets

In his article “Debate on industrial Policy” in D+C/e+Z e-Paper 2016/03, p. 31, Michael Grimm took stock of the debate on industrial policy based on a number of recent publications. We would like to take up where he left off and argue that the question at hand for developing countries is not whether industrial policy is essential, but rather what form it should take to be most effective.